Health Promotion Incentives.

According to Gordian Health Solutions, the effectiveness of wellness programs in bettering health and decling healthcare costs is directly linked to incentives -

o  The more substantial the incentives,

o  The higher the success rate.

Incentives can range from tokens of achievement, such as t-shirts, water bottles and sports equipment, to more substantial financial awards, such as cash incentives or copay vouchers for the successful completion of a wellness program.

Nationwide Insurance is seeing results from a small incentive program initiated by one of the company’s onsite nurses.  To encourage lunchtime walking, the employee has informally launched a “shoelace program” modeled after the karate-belt color system.

Staff Members progress through the color scale until they reach “black-lace” status.  The reward system has resulted in more staff members making commitments to walk during their lunch hour.

At the high end of the reward spectrum, some corporations pay cash to employees who meet wellness objectives. LuK, Inc. offers employees $250 for kicking the tobacco habit and remaining smoke free for 12 months.

For logging fitness points that add up to 10 miles a month, workforce are eligible for health assessments, which could lead to reward amounts of up to $225.

The most effective motivator, as reported by Gordian research, comes through linking participation in health promotion programs directly to insurance premiums. Doing so obviously demonstrates to personnel the positive effects of wellness on their own healthcare costs.

Usually, the first step in linking wellness programming to insurance coverage is lowering deductibles for wellness care or eliminating deductibles altogether. By adding this benefit, businesses can encourage staff to undertake routine screenings and other procedures to respond to medical problems before they become chronic.

Early detection benefits both patient health and business health care costs.

Incentivizing wellness program participation with healthcare credits

More frequently, businesss are going beyond increased wellness care coverage and looking to demonstrate the importance of wellness by linking participation to employees’ bottom lines.

Worthington Industries has lately rolled out a wellness program that allows employees to eliminate their portion of the insurance premium by enrolling in a Healthful Options wellness program.

During the first year of the Healthful Choices program, personnel and their spouses complete Personal Health Assessments and biometric screenings to determine their levels of health risks.

Nurses, dietitians and exercise experts are available to help moderate- and high-risk participants develop individual action plans for improved health through the use of educational materials, behavior modification, telephone help from third-party program health coordinators, and formal health management programs.

By completing the assessments, staff earn their full premium credit. Because some plans at Worthington require no staff member contribution, a cash award takes the place of a credit in those cases.

During year two of the wellness program, the wellness bar is raised slightly.  To continue to receive the wellness credit, participants in the moderate- to high-risk category will be required to work at establishing objectives with third-party health coordinators.

Year three raises the bar again, requiring participants to show progress in meeting goals and to continue to work with health coordinators to reach goals.

After year three, Worthington Industries employees will be on the wellness track.  The company believes that’ll mean a healthier workforce and cost savings for employees and the company.

The well being of Worthington staff members is the foundation of this wellness program, and both staff members and the corporation are expected to benefit from the long-term advantages of the Healthful Options Health Promotion Program.

While Worthington has taken a broad approach to wellness, other corporations have found success in offering incentives in specific areas. Longaberger, for example, offers a discount on healthcare policies for staff members who don’t use tobacco.

An individual employee who doesn’t use tobacco saves $7 per bi-weekly pay. for tobacco-free personnel with family coverage whose families are also tobacco-free, the savings increases to $14 per pay.

The next step –  Penalizing harmful behaviors

As it stands, health care is the only type of insurance that does not focus on penalizing for behaviors that put the insured party at risk. With health care costs rising so dramatically, that could soon change.

Just as an accident likely raises auto insurance premiums, increasing premiums for those who engage in unhealthful behaviors is a possible next step in corporations’ attempts to manage health care costs.

Reports that staff would support this type of action are stacking up. One Ohio employer conducted an informal survey that indicated staff would consider it a morale improve if health-conscious staff were relieved of some of the burden of subsidizing care for staff who engage in behaviors that negatively affect their health.

Whether or not this type of health promotion program gains popularity, one thing is sure –  the need to control the rise in healthcare costs is becoming ever more pressing.

Take the first step

No matter what the strategy, from offering staff members health resources to providing incentives for healthful behaviors, companys have a real opportunity to improve morale and productivity, decrease absenteeism and control healthcare costs through wellness.

The first step is committing to taking one, whatever size effort is appropriate for your business.  Big strides start with small steps.